The Fiscal Response To The Global Crisis

The Indian economy entered a new growth phase since 2003 with an average growth rate of 8.6 per cent compared to an average growth rate of 5.7 per cent in the decade between 1993-94 and 2002-03. Since the second quarter of 2008-09, however, there has been a deceleration in growth reflecting the global economic slowdown. The GDP growth in 2008- 09 was 6.7 per cent. The industrial sector saw a slippage in the growth momentum with a 2.8 per cent expansion compared to 8.8 per cent the previous year. Most manufacturing industries - e.g., rubber, plastic, leather products, food products, metal products, machinery and equipment, transport equipment, and chemical and chemical products - witnessed a growth deceleration.